Histogram is one of my favourite tools and I am pleased that this exercise helped me to understand and use it more effectively in my work.
The dynamic range of many life situations and images covers around 8 different levels (stops). Most modern cameras are able to record the values within the range of about 5 stops. Histogram is irreplaceable when making a decision on which part of the dynamic range of an image needs to be recorded accurately. It helps to exercise creative control over the image and the way it is recorded.
There are other tools and aids that might help with coping with a wide dynamic range of an image. In challenging lighting conditions it is possible to use some filters (a graduated neutral density filter for example) or a fill in flash to compensate for a wider that usual dynamic range. It is also possible to use Photomatix and other similar software packages to merge multiple exposures digitally. However, histogram is the most versatile build-in camera tool that offers a full control at hand and it helps to understand how to use it.